Gartner Research

Banks That Are 'Too Big to Fail' Are Also Too Big to Succeed

Published: 04 March 2013

ID: G00238305

Analyst(s): David Furlonger , Michael Litvak, Pete Redshaw

Summary

Big banks are considered too big to fail, but their size and operational complexity create performance drags that make them too big to succeed. Bank CIOs and COOs must innovate in IT and operations to negate a problem Gartner has identified as the "law of diminishing IT returns."

Table Of Contents
  • Impacts

Analysis

  • The Law of Diminishing IT Returns

Impacts and Recommendations

  • The increasing size and complexity of big banks is outstripping the ability of their CIOs to provide effective IT and operational support
  • Increasing digitalization has created an exponential growth in demand that exceeds the bank CIO's ability to supply IT cost-effectively
  • IT spending outside the bank CIO's control renders traditional management models obsolete

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